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RESOLUTION No

RESOLUTION No. 02/2003/NQ-CP OF JANUARY 17, 2003 ON A NUMBER OF MAJOR UNDERTAKINGS AND SOLUTIONS FOR THE PERFORMANCE OF THE 2003 SOCIO-ECONOMIC DEVELOPMENT TASKS, WHICH REQUIRE CONCENTRATED DIRECTION

As 2003 is the "hinge" year of the current five-year plan (2001-2005), achievements and results to be recorded in 2003 will greatly contribute to the successful realization of the IXth Party National Congress’s Resolution.

In order to implement the resolutions of the second session of the XIth National Assembly on the 2003 State budget tasks and estimates, and concretize the already formulated undertakings and policies, the Government hereby ascertains a number of major undertakings and solutions which require concentrated direction in 2003 as follows:

I. ACCELERATION OF THE RESTRUCTURING AND RAISING OF THE EFFICIENCY AND COMPETITIVENESS OF THE ECONOMY

1. To accelerate the economic restructuring in order to step up the industrialization and modernization, thus adapting the economy to market demands and operation mechanism, bringing into full play its competitive advantages and unceasingly raising its efficiency.

The Ministry of Agriculture and Rural Development, the Ministry of Industry and the Ministry of Aquatic Resources shall take initiative in coordinating with and guiding the localities in carrying out the economic restructuring in agriculture and rural areas along the direction of creating areas for concentrated commodity production through specialized and intensive farming with high yield and quality, applying new scientific, technical and technological advances, raising the value ratio of husbandry, aquaculture and production and business services, reducing the value ratio of cultivation and diversifying production and business lines so as to raise the industrial production value in the rural economic structure.

The Ministry of Industry shall direct the restructuring of industrial products in order to form product lines and items which can play the role of motive force in each product group, with a view to promoting the industrial production, first of all products which we can export and those we have potentials to produce or build, such as ships, small-sized engines, passenger cars, common-type light trucks, train cars, etc.

2. In 2003, to continue organizing the efficient implementation of the program on development of agricultural and forestry plant varieties, domestic and aquatic animal breeds, thus ensuring the sufficient supply of good breeds at reasonable prices to satisfy farmers’ production demands; to diversify the forms of agriculture, forestry and fishery promotion, and provide support for the technology transfer and market information, in order to reduce the costs of agricultural products.

To encourage the localities where conditions permit to carry out field concentration and land plot swaps, land use right transfer and land use purpose change in strict compliance with the land planning and legislation, in order to build up land areas of sizes suitable to large-scale agricultural production along the direction of concentrated, specialized and intensive farming in association with processing establishments and outlets, thus ensuring the attainment of the target of one million tons of high-quality rice for export.

The Ministry of Agriculture and Rural Development shall direct and guide in detail the localities in the implementation thereof.

3. The ministries, branches and localities shall expeditiously review their plannings, first of all the plannings on the use of land and/or water surface, the plannings on branch development, the plannings on industrial parks, export processing zones, open economic zones, hi-tech parks, the plannings on important traffic routes, the plannings on tourist infrastructure, the urban plannings, the plannings on trade centers or border-gate economic zones, etc., so as to readjust and/or supplement contents no longer appropriate or draw up new plannings with a view to bringing into the fullest play the advantages of each branch, region or locality for the fulfillment of economic development tasks and objectives. For a number of important specialized plannings beyond the domestic experiences, it is necessary to hire foreign experts and consultants to elaborate them.

The Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of the Interior and the production-managing ministries and branches shall expeditiously coordinate, right in the first quarter of 2003, with the authorities of Hanoi city and Ho Chi Minh City in finalizing plannings on branches as well as on State enterprise restructuring, with a view to tapping to the utmost the property and capabilities of enterprises of all economic sectors, which are engaged in the same production and business lines in the same locality.

From 2003 on, the approval of projects funded by all capital sources, the assignment of land, forests and water surface to producers shall have to strictly comply with the provisions of the land legislation and with the already approved plannings, and be done within appropriate time limits, so that people and enterprises can feel secured and take initiative in making production investment. The ministries, branches and local administrations shall only permit the implementation of projects in line with plannings already approved by competent agencies.

4. The Ministry of Planning and Investment shall specify the publicization of the detailed construction plannings and investment projects, especially investment policies toward newly started projects, decisions on approval of feasible projects (except for projects or project information which must not be publicized) on the mass media, so that concerned organizations and people can contribute their opinions and take part in the supervision throughout the course of project implementation.

5. The Government agencies and local administrations of all levels shall have to render support and create conditions for convenient and fruitful alignment between farmers and enterprises, scientific and technical institutions as well as credit organizations in the production and sale of farm produce, thus ensuring the harmony of interests of all parties and promoting the initiative and creativity of producers.

The Ministry of Agriculture and Rural Development shall coordinate with the ministries, branches and localities in monitoring and preliminarily reviewing in time the modes of selling farm produce through contracts between producers and sellers, in order to make timely supplements and adjustments.

6. To continue considering export as the pivotal task of 2003. To encourage and support the export of products with high competitiveness in all forms: export credit, export promotion reward, trade promotion, registration of trademark, etc., in parallel with the restriction of import of products which can be produced at home, thus reducing the trade deficit. The Ministry of Trade shall assume the prime responsibility and coordinate with the Ministry of Finance, the Ministry of Planning and Investment and the concerned agencies in guiding in detail the implementation thereof.

In readjusting tax rates and charge rates, the Ministry of Finance shall attach importance to measures to encourage export and use of home-made products.

7. To continue creating favorable conditions for investors of all economic sectors to get access to capital sources for investment in production, renewal of equipment and technologies in service of the requirement for higher quality and lower production costs, with a view to raising the competitiveness of products, especially those with production advantages and outlets as well as those of commodity groups involved in the process of integration with the regional countries.

The State Bank of Vietnam shall coordinate with the Ministry of Finance in proposing specific measures in the first quarter of 2003.

8. The production-managing ministries, the People’s Committees of the provinces and centrally-run cities shall direct the appraisal of production and/or business activities of enterprises under their management; take specific measures to reorganize the production and raise competitiveness of enterprises and products in order to take initiative in integration in strict compliance with tax reduction and non-tax schedules to which our country has committed.

The Ministry of Finance and the Ministry of Trade shall make public the said schedules and coordinate with the production-managing ministries in directing and guiding the enterprises to implement such schedules right from January 2003.

9. To enhance the State control over business monopoly, reduce the protection, control and readjustment of prices of a number of products currently under the State’s monopoly, in order to create motive force for competition so that enterprises shall strive for development on their own. To study and sum up operation experiences of a number of enterprises engaged in non-monopoly business lines, which have been able to ensure the conditions for themselves to operate under the market economy mechanism and have succeeded in turning out commodity items which can compete with foreign-made products, so as to devise measures to gradually eliminate the current business monopoly.

The Ministry of Planning and Investment shall conduct the review thereof in the second quarter of 2003.

10. To make enterprise finance more healthy so as to basically complete by 2005 the transformation of enterprises where the State holds 100% of capital into one-member limited liability companies and the equitization of State enterprises where the State needs not to hold 100% of capital.

To concentrate efforts on consolidating the organization and managerial mechanisms of State corporations and State enterprises; and at the same time step up the ownership transformation of small-sized enterprises, loss-making enterprises and enterprises where the State needs not to hold 100% of capital into joint-stock companies, which have already been approved by competent authorities. To effect the severe handling, including replacement or dismissal from incumbent posts of officials who fail to seriously implement the scheme on restructuring of State enterprises already approved by competent superior authorities.

In the third quarter of 2003, the Ministry of Finance and the Ministry of Planning and Investment shall jointly submit to the Government the specific model of representatives of the State capital owners along the direction of clarifying the State management and owner representation functions of the State management agencies, and securing the State enterprises’ initiative in their production and business as well as autonomy in finance.

11. To organize the application of intermediary institutions in the financial domain such as financial investment companies, debt-purchasing and selling and ownership transformation support companies, financial consultancy companies, asset-valuation companies, etc., in order to create more tools for renewing investment modes, invigorating enterprise finance, and gearing up the process of equitization and ownership diversification of State enterprises according to the Resolution of the IXth Party Central Committee’s 3rd plenum.

12. Not to convert debts owed to the State budget, debts of the budgetary origin and bank loans into capital to be allocated to State enterprises. The profit-yielding efficiency of production and business activities must be considered one of the major criteria for appraisal of operation efficiency of enterprises.

13. To suspend or postpone the construction of projects for which investment procedures have not yet been completed. To concentrate the State’s investment capital on important projects, which directly affect the attainment of the economic restructuring objective, and those projects which can be completed within the year and put into exploitation and use. Units which have many uncompleted projects with prolonged construction duration shall not be permitted to start with new projects. To put an end to the situation of advancing project execution capital to construction investment projects not yet approved by competent agencies, including those managed by central agencies.

14. The Ministry of Planning and Investment shall study amendments and supplements to the Regulation on investment in the form of build-operate-transfer (BOT) contracts applicable to the domestic investment. To permit investment in the form of domestic build-operate-transfer (BOT) contracts in a number of projects; if the capital portion therein under the enterprises’ ownership is lower than 30%, the State budget capital in the already assigned budget expenditure estimates shall be used to ensure the maximum portion of 30% as prescribed in the Government’s Decree No. 77/CP of June 18, 1997.

15. The Ministry of Communications and Transport and the Ministry of Finance shall jointly study and promulgate regulations on assignment of the right to collect tolls for a definite time on bridges and roads where toll collection is permitted. For the immediate future, such regulations shall be applied to national highways 51, 5 and 10 and Lang - Hoa Lac road.

16. To experimentally allow the domestic private enterprises which have already been assigned the long-term land use right to sublease land to foreign investors within the land use right assignment duration. In the second quarter of 2003, the Ministry of Natural Resources and Environment shall submit to the Prime Minister for promulgation the specific management mechanism to serve as basis for such experiment and supervision thereof.

II. MOBILIZATION OF RESOURCES FOR DEVELOPMENT INVESTMENT

1. Investors and localities shall have to mobilize to the utmost resources of all economic sectors at home and abroad to increase capital sources for development investment, considering it one of the important solutions to boost and expand the production, for the attainment of the 2003 development targets.

2. Enterprises directly investing in new fields, creating important products, engaged in high-risk fields, field of development of information technology, computer software, providing information network development services according to the world’s modern and advanced standards, which aim to raise the competitiveness of enterprises and the entire economy, shall, apart from the preferences they are entitled to as provided for, be considered for guarantees for import of equipment in direct service of their investment projects. The Ministry of Finance and the State Bank of Vietnam shall jointly provide the detailed implementation guidance.

3. The State’s investment credit capital must be concentrated on key areas and fields, important projects in direct service of the objective of economic restructuring and economic growth promotion. To expand subjects eligible for investment preferences and limit subjects eligible for borrowing capital directly from the Development Assistance Fund.

4. To encourage investment in projects with possibility of capital recovery with the source of capital from project bond issuance.

The Ministry of Finance shall expeditiously study and propose to the Prime Minister the issuance of foreign-currency bonds to mobilize foreign currencies in the country for the objective of restructuring of national debts and investment in a number of the State’s key projects.

5. The Ministry of Planning and Investment and the Ministry of Finance shall jointly guide the diversification of forms of development investment capital contribution and infrastructure commercial operation; encourage and render adequate State budget support for investment in construction of rural infrastructure projects and projects outside the fence of industrial parks, export-processing zones and hi-tech parks of all economic sectors.

6. Localities in key economic zones, which have conditions to borrow capital and repay their debts, shall be allowed to issue investment bonds to mobilize domestic capital for socio-economic infrastructure construction, thus creating conditions for attracting investment and long-term development in their respective geographical areas, on the principle of self-borrowing and self-repayment and ensuring the stable national finance.

The Ministry of Finance shall guide, inspect and supervise the implementation of this undertaking.

7. To review and evaluate the disposition and use of support capital sources from the central level for localities according to such specific objectives as development of socio-economic infrastructure, tourist infrastructure, aquacultural infrastructure, craft villages, etc., in order to ensure the observance of investment policies and objectives, promote the branch development and create jobs, thus contributing to speeding up the economic growth of each locality in particular and the entire economy in general.

The Ministry of Finance shall assume the prime responsibility and coordinate with the ministries and localities in reviewing and reporting the implementation results to the Prime Minister in the third quarter of 2003.

8. To continue improving the investment environment to attract foreign investment capital, especially the creation of favorable conditions for rapid development of supporting industries; to step up the reform of administrative procedures and the process of processing, evaluation, licensing and post-licensing State management of foreign investment projects along the direction of clearly defining the responsibilities of each agency, level or branch in revising and readjusting regulations on foreign investment, jointly drawing up the list of projects calling for investment and in promoting foreign investment. To further diversify foreign investment forms. To step up the implementation of the schedule of reducing investment costs, narrow and proceed to eliminate the input service charge rate difference, and narrow the difference between tax rates applicable to domestic enterprises and those applicable to foreign-invested enterprises.

The Ministry of Planning and Investment shall specify contents which require implementation guidance in the second quarter of 2003, and at the same time devise plans to intensify foreign investment promotion activities, focusing on geographical areas with great potentials.

9. The Ministry of Planning and Investment shall prepare contents and measures to experimentally permit foreign investors to set up joint-stock companies and convert a number of operating foreign-invested enterprises into joint-stock companies.

10. The Ministry of Planning and Investment and the Ministry of Finance shall prescribe specific measures to create a greater harmony between Vietnam and the donors in terms of procedures, in order to attract more ODA capital sources and raise their use efficiency; to speed up the ground clearance, assign land strictly according to the set schedules and allocate sufficient reciprocal capital for execution of projects, especially those expected to be completed in 2003 or 2004, so as to accelerate the capital disbursement for project execution under the already concluded treaties.

11. The State budget (at the central and local levels) shall prioritize the investment in scientific research or technological development programs in service of the economic restructuring, provide support for technological renewal and application of new technologies by enterprises, and support for enterprises, peasants’ households and scientific research institutions to effect their alignment in production research and product sale; support research institutions to establish relationships with foreign giant companies and scientific and technological agencies in the supply and transfer of new, advanced and modern technologies. The Ministry of Science and Technology shall study and submit to the Government specific policies and solutions.

12. To study and elaborate regulations on the conditions, capability and responsibilities of consultants and consultancy bodies in the formulation of investment projects and designing; powers and responsibilities of investors; responsibilities of organizations and individuals in contract awarding or undertaking, in project construction, supervision, pre-acceptance test, warranty and maintenance. The Ministry of Planning and Investment and the Ministry of Construction shall promulgate specific regulations thereon.

To study and amend as soon as possible the Bidding Regulation, amend and supplement regulations on construction norms and unit prices, reform the mechanism of inspecting and supervising construction quality, supervising construction investment costs, thus promptly detecting misconducts or violations in organizing the project construction and pre-acceptance test. If any misconducts or violations are detected, the construction must be suspended for application of remedies. Supervising organizations must be independent from investors and construction organizing units; to put an end to the situation that the supervising organization and the construction unit both belong to the same management agency, with a view to preventing the collusion or compromise between them in the supervision, pre-acceptance test and settlement, which can affect the project quality, cause wastage and/or loss in construction investment. The Ministry of Planning and Investment and the Ministry of Construction shall have to expeditiously study and submit the said amendments and supplements to the Prime Minister.

The persons competent to decide on a process shall have to bear responsibility for their decisions in such process. The unit heads shall be held responsible for wastage and/or loss in construction investment in projects under their management.

13. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the concerned agencies in proposing the readjustment of bidding and capital construction investment mechanisms, in order to minimize loopholes in the bidding process and wastefulness in capital construction investment.

III. FINANCE AND MONETARY ISSUES

1. The ministries and agencies at the central level and the provinces and centrally-run cities shall assign the budgetary revenue and expenditure task to their attached units right from January 2003. To strive to overfulfill the task of collection with revenue amounts larger than estimated revenue levels assigned by the Prime Minister and fulfil the task of expenditure according to the assigned estimates. To publicize the allocation and assignment of budgetary revenue and expenditure estimates according to regulations.

2. To organize the performance of budget revenue task strictly according to the provisions of law. To intensify the inspection before and after the reimbursement of value added tax and strictly handle violations; to recover appropriated tax reimbursement amounts. To resolutely combat tax under-collection, smuggling, trade frauds, tax evasion and outstanding tax arrears.

3. To ensure the 2003 budget source for the wage reform strictly according to the National Assembly’s Resolution. To create source for the wage reform in 2003 and subsequent years, the local budgets must earmark at least 50% of revenue increase amounts of 2002 over the estimates decided by the People’s Councils; 50% of revenue increase amounts of the 2003 estimates over 2002 estimates already assigned by the Prime Minister; save regular expenditures by 10% (excluding wages and expenditures of wage nature) of the 2003 expenditure estimates; 35-40% of collected amounts left to non-business and administrative units according to the prescribed regime; take initiative in setting aside 50% of the revenue increase amount of 2003 as compared to the estimates assigned by the Prime Minister. After applying the above-said measures, if the sources are still insufficient, the central budget shall supplement them to ensure the implementation of the new wage regime.

4. To make purposed supplements from the central budget to the local budgets instead of the mechanism of reinvestment (or reallocation) according to the estimates of revenues from various sources in localities.

5. To organize the issuance of "educational bonds" for implementation of the program on solidification of schools and classrooms. To continue mobilizing contributions of enterprises and the entire society for such program.

6. From 2003 on, the price-subsidized or free-of-charge supply of radio receivers to inhabitants in deep-lying and remote areas shall be no longer effected, and the funding therefor shall be used to support localities to invest in the development of radio and public-addressing stations in commune clusters of the mountainous provinces and regions inhabited by ethnic minority people. The Nationality Committee shall assume the prime responsibility and coordinate with the Ministry of Finance, the Ministry of Planning and Investment and the Ministry of Culture and Information in guiding in detail the implementation of this policy.

7. The ministries, the central agencies and the People’s Committees of all levels shall have to soon complete the assignment of rights to autonomy in payroll organization, personnel, wage, finance and property to non-business units according to the Government’s Decree No. 10/2002/ND-CP of January 16, 2002. The Ministry of Finance shall coordinate with the concerned ministries and branches in guiding in detail the implementation steps and adopting mechanisms to tightly manage, inspect and supervise the implementation units after they are assigned such rights.

8. To effect the mechanism of rewarding the local budgets:

- For special consumption tax on home-made goods: 100% of the over-collected central budget revenue amounts as compared with the assigned estimates shall be rewarded.

- For collected amounts in excess of the assigned estimates of revenues being export tax, import tax and special consumption tax on import goods: 100% of the over-collected amount of VND 20 billion or less and 50% of the over-collected amount exceeding VND 20 billion shall be rewarded, but the total reward amount must not exceed VND 50 billion.

- For divided revenues: 20% of the positive difference between the actually collected revenues to the central budget in 2003 and that in 2002 shall be rewarded.

- The revenue over-collection rewards of Hanoi city shall comply with Hanoi Capital Ordinance No. 29/2000/PL-UBTVQH of December 28, 2000 of the National Assembly Standing Committee.

The above-said revenue over-collection rewards shall be used to supplement the investment in infrastructure construction, performance of important or urgent tasks emerging in localities and rewards to the lower-level budgets.

9. To organize the implementation of the 2003 budget estimates:

a/ For the State budget:

- The revenue increase amounts (if any) over the estimates shall be used to reduce the State budget deficit, increase the sources for debt repayment and development investment, supplement the source for implementation of the new wage regime, increase the financial reserve fund and budgetary reserve, in order to take initiative in coping with natural disasters and handling unexpected tasks.

- If the collected revenue amounts are much lower than the estimates, the estimate-adjusting schemes must be drawn up and submitted to the National Assembly Standing Committee for consideration and decision. The State budget deficit must be kept at 5% of the gross domestic product (GDP) at most.

b/ For the local budgets:

- The revenue increase amounts (if any) over the estimates shall be used to increase the sources for debt repayment and/or development investment, supplement the sources for implementation of the new wage regime, increase of the financial reserve fund and budgetary reserve in order to cope with natural disasters and handle unexpected tasks.

- If the collected revenue amounts are smaller than the estimates, expenditures not really necessary must be correspondingly cut down.

10. The Ministry of Finance shall organize the review of implementation of, and propose amendments and/or supplements to, the Value Added Tax Law, the Special Consumption Tax Law, the Enterprise Income Tax Law and the Agricultural Land Use Tax Law, and elaborate new tax laws in order to encourage and create conditions for raising competitiveness and compatibility of Vietnamese legislation with the integration process.

11. The Ministry of Finance shall study and submit to the Government for promulgation a decree prescribing the competence to spend budgetary money in a strict, clear and transparent manner, clearly defining which expenditures the unit heads can make as well as spending amounts; and at the same time providing for the right of financial or treasury officials to cancel non-purpose expenditures detected to be in contravention of the prescribed regime.

12. To keep stable the value of Vietnam dong, ensure that the inflation rate is controlled at 5% or lower, thus maintaining the general balance and boosting the economic growth. To improve and reform the administration of the monetary policy along the direction of raising the analyzing and forecasting capability, with a view to actively regulating the monetary market through indirect monetary policy tools.

13. Credit institutions may take initiative in selecting, deciding and take self-responsibility for providing loans without property-security measures according to the regulations on loan security. The State Bank of Vietnam shall study and promulgate regulations on loan levels requiring no property security applicable to borrowers being cooperatives and peasants’ households, which have already embarked on large-scale commodity production, have feasible projects and are capable of repaying bank loans.

14. Credit institutions may use the mobilized capital sources to contribute capital to set up the Credit Guarantee Fund for small- and medium-sized enterprises. The provinces and centrally-run cities shall have to set aside capital from their budgets to contribute to the Fund’s charter capital in strict compliance with the Prime Minister’s Decision No. 193/2001/QD-TTg of December 20, 2001.

15. To concentrate efforts on and take active measures for the settlement of outstanding debts; to supplement the charter capital of the State-run commercial banks and policy banks; to implement the scheme for consolidation, perfection and invigoration of the credit institutions’ system.

16. To expand and develop the modern banking utility services to meet the economy’s demands therefor. To perfect the legal mechanisms for check or bank card payment; to develop the inter-bank electronic payment system in order to expand the non-cash payment in the economy.

17. The State Bank of Vietnam shall study and promulgate the Regulation on export credit insurance, voucher discount loans; raise the maximum use rate of short-term capital mobilized by commercial banks for the provision of medium- and long-term loans.

18. The State Securities Commission should take specific measures to consolidate and develop the securities market in a stable, safe and steady manner; encourage and create conditions for the increase of quality commodity volume and the number of large and prestigious enterprises and joint-stock commercial banks as well as a number of foreign-invested enterprises to participate in the listing on the securities market; and at the same time concentrate its direction so as to put the Hanoi Securities Trading Center into operation as soon as possible.

IV. A NUMBER OF SOCIAL DOMAINS

1. The Ministry of Education and Training shall concentrate efforts on measures to renew the curricula and text books; assimilate comments on textbooks of grades 1 and 6 for revision, supplement and improvement thereof; well carry out the compilation of textbooks of grades 2 and 7; supply in time and adequately teaching equipment to schools; improve the study curricula and raise the educational quality and efficacy in the boarding ethnic minority schools, so that the graduates from those schools shall be qualified (capable) to take part in the management and construction of their villages and hamlets. To well implement the regulations on development of the pre-school education and the program on solidification of schools and classrooms.

2. To concentrate on well carrying out the university and college student enrollment, and making vigorous changes in vocational education. To continue rectifying the extra-class teaching in general education schools and the scaling up of non-formal training. To step up the socialization in parallel with the enhanced management in the field of education and training, enhance the control of quality of in-service training, correspondence training and training by people-founded schools. To permit the setting up of new training establishments only when all conditions on material foundation, teachers’ contingents and training programs are fully prepared. The Ministry of Education and Training shall work out plans thereon and organize the implementation thereof right in the first quarter of 2003.

3. The Ministry of Science and Technology, the Ministry of Education and Training and the Ministry of Finance shall jointly study and propose to the Prime Minister in the second quarter of 2003 the setting up of the National Fund for Scientific and Technological Development. To formulate the mechanism for alignment between research and training institutions and production as well as business units, the mechanism and policies to create motive force for the development of scientific research, training and employment of scientific personnel.

4. To concentrate on directing the implementation of programs on information technology, biological technology, new materials technology and automation technology, building Hoa Lac hi-tech park, Ho Chi Minh City hi-tech park and key national laboratories; to formulate the strategy for development of oceanic and aerospace sciences and technologies.

5. The Ministry of Natural Resources and Environment shall expeditiously finalize the national strategic scheme on environmental protection, then submit it to the Prime Minister for ratification; and at the same time prepare conditions for directing and guiding the implementation of the "plan on thorough handling of establishments causing serious environmental pollution" right after the Prime Minister approves it.

6. To take initiative in quickly and definitely dealing with epidemics, not letting epidemics occur on a wide scale; to well perform the work of managing and caring for the people’s health. To organize the setting up of the Fund for medical examination and treatment for the poor. To enhance the work of education about environmental sanitation and food hygiene and safety.

In the second quarter of 2003, the Ministry of Health shall propose to the Government the mechanism and solutions for implementation of the national strategy on reproductive health care and the national strategy on nutrition; and at the same time, effectively materialize the national targets of preventing and combating social diseases, HIV/AIDS and child malnutrition throughout the country. To implement policies and active measures to train medical personnel in difficulty-hit, deep-lying and remote areas. To organize the experimental assignment of the right to autonomy to hospitals over their wage funds.

7. To study and perfect the mechanism for combined use of resources of the hunger eradication and poverty alleviation programs and projects. To continue implementing the mechanism whereby well-off agencies and localities shall help poor communes eradicate hunger and alleviate poverty. To encourage and create conditions for development of craft villages and small- and medium-sized enterprises.

To direct the pilot formulation of models of alignment between corporations and households as well as poor communes in developing raw materials zones and signing product consumption contracts; to build models of cultivation on terraced fields, thus ensuring food security in highland communes; to build models of development of aquaculture in association with hunger eradication and poverty alleviation in coastal alluvial communes and models whereby dwelling houses are built in association with population clusters and lines in Mekong River delta; to build a model whereby communes organize and support poor people in labor export. To concentrate on directing the socio-economic development in the Central Highlands and Mekong River delta provinces and the northern mountainous provinces meeting with great difficulties strictly according to the Prime Minister’s decisions. The Ministry of Labor, War Invalids and Social Affairs, the Ministry of Health and the Nationality Committee shall, according to their respective functions and assigned tasks, coordinate with the concerned agencies in guiding in detail the implementation of this undertaking.

8. To ensure adequate capital sources and vigorous operation of the social policy banks; to direct the effective integration of programs and projects on production, business, restructuring, selection of crops, domestic animals, trades and crafts, programs on technology transfer, agriculture promotion, forestry promotion, fishery promotion, market guide with the use of credit capital of the social policy banks; to combine economic programs with infrastructure construction and socio-economic programs, in order to help borrowers use borrowed capital for right purposes, with efficiency and minimum risks.

9. To step up the campaign "The entire population unite to build a cultured lifestyle"; to build a civilized and healthy way of life; to create conditions for people to enjoy and participate in cultural activities and creation. To socialize cultural activities, encourage and create conditions for mobilizing resources for cultural development, and consider investment in culture as investment in human and investment in sustainable socio-economic development.

V. RESTORATION OF LAND-ROAD TRAFFIC ORDER AND SAFETY, AINTENANCE AND ASSURANCE OF SOCIAL ORDER AND SAFETY

1. To take 2003 as the year for nationwide traffic order and safety restoration. To expeditiously implement the Resolution of the second session of the IXth National Assembly on the mobilization of the entire population to participate in maintaining traffic order and safety. The local administrations of all levels shall take initiative in setting forth specific targets and contents suitable to the requirements and characteristics of each locality, then coordinate with socio-political organizations in carrying out the compaign, creating actual improvements in the perception and action of everyone and raising the sense of traffic rule observance.

2. The ministries, branches and localities shall, within the ambit of their functions and powers, have to take initiative in well implementing 9 urgent measures defined in the Government’s Resolution No. 13/2002/NQ-CP of November 19, 2002 on measures to check the rise in, then proceed to gradually reduce, traffic accidents and congestion. The presidents of the People’s Committees of the provinces, cities and provincial towns shall personally act as heads of the traffic order and safety steering committees of their localities. Each locality shall have to work out specific action programs and closely direct the application of measures to check the rise in, then proceed to gradually reduce, traffic accidents and congestion.

3. The Ministry of Public Security and the Ministry of Communications and Transport shall coordinate with localities, first of all Hanoi, Ho Chi Minh City, Hai Phong and Da Nang cities, in working out plans and specific measures to deal with, prevent and reduce land-road traffic accidents; and concurrently devising measures to control the increasing number of motorbikes in urban centers.

4. The Ministry of the Interior and the Ministry of Public Security shall reinforce the traffic police force to maintain traffic order and safety suitable to conditions of each locality, especially Hanoi and Ho Chi Minh cities.

To impose fines for all violation acts committed by traffic participants (including pedestrians) at reasonable levels, in a regular and constant manner. The Ministry of Public Security shall coordinate with the Ministry of Communications and Transport and the Ministry of Finance in specifying the strict handling of acts of violating the traffic rules.

5. To formulate and implement the mechanism of coordination among units and organizations in mobilizing voluntary forces to join the traffic police force in restoring traffic order and safety in 2003, first of all the coordination between the Ho Chi Minh Communist Youth Union with the authorities of Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Hue and Can Tho cities. To experimentally decentralize to each authority level in Hanoi and Ho Chi Minh City the competence and responsibilities for organizing, managing, restoring and maintaining traffic order and safety in urban districts under the Prime Minister’s direction in Official Dispatch No. 1640/CP-CCHC of December 19, 2002.

6. To continue directing the law enforcement bodies in thoroughly investigating, pursuing and examining and publicly trying all offenders, regardless of their official positions. To attack, sweep away and crack down in time organized crimes, corruption, smuggling, drug-related crimes, and blot out dens of social evils and narcotic trading. To strive to substantially reduce in 2003 the number of cases of committing crimes and evils as compared with 2002, especially serious crimes. To attack and suppress criminal offenses in each special domain, along key routes and regions such as Hanoi and neighboring provinces, the northern and northeastern border regions, the Central Vietnam and Central Highlands, Ho Chi Minh City, the southeastern and southwestern provinces.

7. The Government shall intensify the direction and inspection of the performance and exercise of responsibilities and powers of the heads of administrations of all levels in settling complaints of citizens. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to spare adequate time for the work of settling complaints and denunciations of citizens, thus ensuring that the settlement thereof is compliant with the regulations on complaints and denunciations. Complaints must be settled in a public, democratic and lawful manner and on the principle that the administrations of all levels, particularly the grassroots level, must directly examine and settle complaints of citizens; and the superior administrations must intensify their inspection and supervision, and concentrate efforts on expeditiously and definitely concluding the cases already settled by subordinate administrations, in order to remedy injustice or errors; and at the same time, promptly handle officials committing violations or misconducts, or subordinate administrations that fail to seriously or properly implement directions of the heads of the superior administrations.

The State Inspector General shall elaborate and submit to the Government the scheme on settlement of citizens’ complaints and denunciations, clearly specifying the contents regarding reception of citizens, settlement of complaints which are lodged without going through the administrations of the places where complainants reside, and execution of settling or handling decisions which have taken legal effect, according to the above-said principle.

8. To study and submit to the National Assembly Standing Committee for promulgation regulations on settlement of mass complaints, observance of complaint-settling decisions having taken legal effect, handling of persons who abuse the complaining and denouncing right to instigate others to lodge complaints, thus causing public disorder or opposing officials on duty.

VI. ENHANCING DISCIPLINES IN THE STATE ADMINISTRATIVE SYSTEM

1. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, and the presidents of the People’s Committees of all levels shall base themselves on the Government’s Working Regulation to direct the revision of, amendment and supplement to, the working regulations of their respective ministries, branches and localities. The guiding spirit of this Regulation is to clarify the responsibility assignment on the principle that one person or one organization takes charge of only one work; to clearly define the heads’ responsibilities to urge, inspect and effect the close direction of implementation; each leading level and each person shall properly perform and exercise its/his/her own functions, tasks and powers, not to take on jobs in others’ charge nor to shirk and shift responsibilities to others; to reduce and improve contents of meetings, and spare more time for inquiring into actual situations, inspecting and guiding the subordinates in implementation.

2. To promulgate the Government’s decree on the State administrative management decentralization between the Central Government and local administrations on the principle that works shall be assigned to administrative levels which can carry out them with efficiency and convenience for people and enterprises, on the basis of ensuring the uniform State management institution; responsibilities and powers in assigned works must be associated with responsibilities and powers in organization, personnel and use of funding. In 2003, to assign the responsibilities for managing non-business payrolls to the provinces and centrally-run cities. To reform the wage management mechanism along the direction of socialization. The Ministry of the Interior shall coordinate with the other agencies in expeditiously preparing and submitting the scheme thereon to the Government for consideration, adoption and implementation in the first quarter of 2003.

3. The ministers, the heads of the ministerial-level agencies and the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to devise plans to examine and inspect the law observance by the services, branches and localities under their charge, considering it an important and regular task as well as a content of inspection by the heads of the superior administrative agencies over their subordinate authorities.

4. To observe the principle that the heads of the superior administrative agencies may temporarily suspend their subordinate officials from work when the latter violate laws, show irresponsibility or fail to fulfill their tasks, regardless of levels that directly manage them, and assign the agencies directly managing such officials to conduct the inspection and consider administrative disciplines. The heads of the State administrative agencies shall be fully competent and responsible for managing and administering the public-service agencies and bear joint liabilities for law violations committed by organizations, officials and/or public servants under their charge.

5. In the first quarter of 2003, to amend the Government’s Decree No. 97/1998/ND-CP of November 17, 1998 on imposing disciplining forms and material liabilities on public servants, adding joint liabilities of leading and managing officials who let negative phenomena or corruption cases occur in their units.

6. The local administrations of all levels must resolutely effect within their respective competence the recovery of land areas already assigned to the State enterprises but left unused or used for wrong purposes, severely punish those who disobey the land recovery orders. To discipline officials and public servants who violate the State’s regulations on land management and use, especially for violations being public land encroachment, force ordinary people to give up land or make illegal land transfer, and those who commit wrongdoings and violations in capital construction investment, building of offices and procurement of equipment not according to their criteria.

7. In the second quarter of 2003, the State Inspectorate shall finalize the scheme on reform of citizen reception and enhancement of inspection and examination of the system of the State administrative apparatuses, together with the Inspection Bill, for consideration and submission by the Government to the National Assembly.

VII. ORGANIZATION OF IMPLEMENTATION

1. The ministries, the ministerial-level agencies, the agencies attached to the Government shall concretize and organize the implementation of the Government’s 2003 working program.

2. From 2003 on, all agencies from the central to local level shall publicly announce all their works (except for contents classified as national secrets) to the people, so that the latter can know, contribute their comments and supervise the performance thereof. The Ministry of Justice and the Ministry of Public Security shall guide in detail contents classified as national secrets.

3. The ministries, the ministerial-level agencies and the local administrations of all levels shall make monthly and quarterly appraisal of results of implementation of working programs, plans and budgets of their respective units and branches; detect difficulties and problems met by their subordinate authorities, then seek measures to remedy and support in time the latter to solve them. For problems falling beyond their competence, they shall gather and propose solutions thereto, then report them to their superior authorities for decision.

4. The Government shall maintain topical briefings as a solution to review the situation and propose measures to step up the implementation of quarterly plans and State budget.

On behalf of the Government

Prime Minister
PHAN VAN KHAI